Free Forex Signals for Wednesday, January 28th

-Both the yen and the dollar rose today in response to China’s increased restrictions being imposed on bank lending.

-The yen reached a nine month peak against the euro due to ongoing concerns that credit problems in euro countries, primarily Greece, will hinder a much needed global economic comeback.

-The concerns over Greece’s financial stability are centered around the fact that they reported a gross domestic product budget deficit in 2009 of nearly 13%, significantly above the 3% ceiling in place for euro countries.

-The New Zealand dollar dropped almost 1% against the US dollar due to investors retreating from high-yield currencies pending the rate setting decision due to be released by the Federal reserve on Wednesday. The interest rate is expected to remain near zero.

-The Ifo expectations in Germany that were being closely monitored made a surprising jump from 99.1 to 100.6.
This marks the first time since September 2007 it has reached over 100 and the highest peak since July of the
same year. This marks a consecutive increase over the past 13 months.

-The overall Ifo business climate indicator rose from 94.6 to 95.8

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Semi-Annual Analysis Results Released

-The semi-annual forex analysis results were posted by the Foreign Exchange Joint Standing Committee this week

-Turnover in basic products such as spots, swaps and forwards has grown 13% and reached $1.43 trillion daily

-Turnover in complex options and currency has grown 37% and reached $119 billion daily

-Trading volume results put the dollar in the lead with 42% of flow, the euro ranked second with 22.5%,
sterling in third place with 9.35% and the yen in fourth with 8.45%

-New York forex trading is currently growing faster than in London. London, however, still accounts for nearly
33% of all global currency trading while New York is responsible for about 20%. The increase in New York
trading is being attributed to the increase in electronic trading methods which can process trades much faster.

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